Correlation Between Caledonia Mining and Artemis Gold
Can any of the company-specific risk be diversified away by investing in both Caledonia Mining and Artemis Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Caledonia Mining and Artemis Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caledonia Mining and Artemis Gold, you can compare the effects of market volatilities on Caledonia Mining and Artemis Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Caledonia Mining with a short position of Artemis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caledonia Mining and Artemis Gold.
Diversification Opportunities for Caledonia Mining and Artemis Gold
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Caledonia and Artemis is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Caledonia Mining and Artemis Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artemis Gold and Caledonia Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Caledonia Mining are associated (or correlated) with Artemis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artemis Gold has no effect on the direction of Caledonia Mining i.e., Caledonia Mining and Artemis Gold go up and down completely randomly.
Pair Corralation between Caledonia Mining and Artemis Gold
Given the investment horizon of 90 days Caledonia Mining is expected to under-perform the Artemis Gold. But the stock apears to be less risky and, when comparing its historical volatility, Caledonia Mining is 1.03 times less risky than Artemis Gold. The stock trades about -0.14 of its potential returns per unit of risk. The Artemis Gold is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 651.00 in Artemis Gold on February 7, 2024 and sell it today you would lose (11.00) from holding Artemis Gold or give up 1.69% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Caledonia Mining vs. Artemis Gold
Performance |
Timeline |
Caledonia Mining |
Artemis Gold |
Caledonia Mining and Artemis Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Caledonia Mining and Artemis Gold
The main advantage of trading using opposite Caledonia Mining and Artemis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caledonia Mining position performs unexpectedly, Artemis Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Artemis Gold will offset losses from the drop in Artemis Gold's long position.Caledonia Mining vs. DRDGOLD Limited ADR | Caledonia Mining vs. Galiano Gold | Caledonia Mining vs. Mastech Holdings | Caledonia Mining vs. EMX Royalty Corp |
Artemis Gold vs. Osisko Mining | Artemis Gold vs. Almadex Minerals | Artemis Gold vs. Galiano Gold | Artemis Gold vs. US Gold Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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